Financial Analysis of Major Medical Centre in Healthcare:

School: University of Missouri, Columbia - Course: NURSE PSYCHIATRI - Subject: Accounting

Case Study-Financial Analysis A case study can be described as a detailed examination of one individual, group, or event. In this case review, Major Medical Centre is the organisation we are focussing on in a bid to try and understand its financial management. Understanding the financial background of Major Medical Centre will be quite helpful in determining its strengths and limitations for the personnel to adjust their planning method accordingly. Furthermore, the analysis may increase profitability, help set benchmarks, support healthcare in maximising productivity and provide a comprehensive view of the financial status in the future. Financial Status The balance sheet, income statement, and cash flow statement are the most important financial statements for a skilled healthcare facility. However, these statements are dependent on correct and timely information provided by the facility's chart of accounts at a particular time—the assets resulting from the summation of liability and equity in financial analysis. As reported by the auditor, the financial statement of Major Medical Centre has indicated the company's assets, liabilities, and equity. The accounting principles reveal the financial position of Major Medical Centre on December 31, 2021, and 2020, and the results of its operations, changes in net assets, and cash flows for the years (I.N. Sincer and Old, P.1). To understand the financial health of the medical centre, the auditors had to look into: the debt of the corporation relative to the equity, the liquidity of the healthcare corporation in the short term, the corporation's assets in the financial transactions, and the length of receiving outstanding payments from patients. Healthcare3 Balance Sheets and Income Statements The statements reflect the corporation's assets and liabilities. The auditor's analysis of working capital sufficiency, asset performance, and capitalisation structure are fundamental pillars that show the soundness of investments on the balance sheet (Edu Pristine,2015). The assets, liabilities, and equity appear to be the critical components of the balance sheet scrutinised to comprehend the medical centre's financial status. The corporation's assets, or the methods by which it operates, are balanced by its financial liabilities and the equity investment made in the company and its retained earnings. The centre's assets are what it utilises to run its business, while its liabilities and equity are the two funding sources for these assets. The numerous elements of each are Non-current assets (cash and cash equivalents, accounts receivables, and inventory) and current assets (cash and cash equivalents, accounts receivables, and stock). For instance, the statement of financial position shows a difference in cash and cash equivalents between the years 2021 and 2020. In 2021, the figures were slightly lower than in 2020. This could have an impact in terms of the medical centre paying its short-term debt obligations.